Have an Open Mind When You Are Trading
There is not only one way to make money in the stock market. Most people think about the conventional wisdom of “buy low, sell high” and while that is indeed one way to make money, it is not the only way. You can sell short (which is advanced), but you can also trade forex, commodities and get into options. You need to find ways to make money, not just buy low, sell high. Learning and understand all of the ways to make money in the stock market will help you be profitable.
Remember the News and Media is all about Hype
Remember everyone has an agenda. If a stock has been upgraded, people may want to sell it to you! If the stock is downgraded, they may want people to sell the stock!
Learn To Trade First
Learn to trade and manage your money before increasing your share size. You may need to try one or two years to see if you’re consistent and see if your system is actually working. Once you can provide consistent results, you can jump-in with some real money!
You Have To Create Your Won Risk/Reward Strategy
You need to create your own trading system and should not be following anyone blindly. You need to do your own research, create your own plan and determine your own risk and reward. Focus on your stock trading as a business and treat as such.
Create Your Own Perspective
You need to determine your actual strategy. Are you a day trader or planning to invest for 50 years down the road? How do you see things and view the world? What is your trading horizon?
Understand charts and what they mean.
There is More To Life Than Money
The stock market and money is a tool to enhance your life. Never forget why you need money – it is a tool to enhance your life.